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Bitcoin ETFs Roar Back as Balchunas Revives Gold Debate on Wall St

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Crypto Breaking News

U.S. spot Bitcoin ETFs added fresh capital on March 23, reversing earlier weakness and restoring momentum across the category. The rebound followed several weeks of withdrawals in 2026, and it narrowed the funds’ year-to-date deficit. Bloomberg ETF analyst Eric Balchunas linked the trend to persistent demand, even as Bitcoin stayed well below recent highs.

Bitcoin ETF Flows Regain Traction

Spot Bitcoin ETFs recorded $167.2 million in net inflows on Monday, extending a broader recovery in March. Moreover, recent inflows lifted March totals near $2.5 billion after heavy withdrawals earlier in 2026. That reversal left year-to-date flows near flat, and one more strong session could push totals back above zero.

Balchunas said the category showed unusual staying power during six months marked by a sharp Bitcoin decline. Bitcoin lost about 40% over that span, yet the funds kept drawing demand instead of broad liquidation. As a result, the rebound strengthened the argument that these products now attract more durable holders.

BlackRock’s iShares Bitcoin Trust led the group, and it recovered its own year-to-date flow losses. The fund also ranked within the top 2% of U.S. exchange-traded funds by 2026 inflows. Therefore, IBIT continued to separate itself from peers through scale, steady demand, and faster recovery.

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Gold Comparison Returns to Focus

Balchunas revived the Bitcoin versus gold debate by comparing current ETF behavior with gold funds trading a decade ago. When gold prices fell sharply around 2013, many gold-backed funds lost substantial assets within months. That episode reflected typical market behavior because large drawdowns often trigger faster selling across commodity products.

By contrast, spot Bitcoin ETFs absorbed the price shock and then regained momentum more quickly. Balchunas used that divergence to argue that Bitcoin fund holders behaved differently from traditional gold fund holders. In turn, the comparison widened discussion about whether Bitcoin now commands stronger long-term conviction than gold.

The debate also expanded because Bitcoin ETFs remain relatively new, while gold funds have operated for many years. Even so, the latest flow pattern suggested that Bitcoin products handled stress better than many expected. That backdrop provided fresh context for current ETF demand and Bitcoin’s competition with gold.

Wall Street Activity Adds Context

Separate corporate filings added context to the ETF rebound because major financial firms announced new Bitcoin plans. Strategy filed documents that would support up to $42 billion in additional Bitcoin purchases over time. Meanwhile, Morgan Stanley submitted paperwork tied to its own spot Bitcoin ETF effort.

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Those moves indicated that traditional finance still sees commercial value in Bitcoin products despite recent volatility. They also supported the view that institutional participation in the sector continues to broaden. Consequently, ETF flows and corporate filings reinforced the same message about sustained market engagement.

Shaun Edmondson highlighted Monday’s ETF inflows alongside those filings and framed both developments as mutually supportive. His view added momentum to the broader narrative around tightening supply and expanding institutional demand. For now, the latest ETF data and related filings have reset the Bitcoin versus gold discussion.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

BitGo, Susquehanna Launch Institutional Access to Prediction Markets

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BitGo, Susquehanna Launch Institutional Access to Prediction Markets

BitGo, a digital asset custody and trading platform, and Susquehanna Crypto will collaborate to give institutional clients over-the-counter access to prediction markets, allowing them to trade event-based contracts using cryptocurrency or stablecoins held in custody.

According to Tuesday’s announcement, trades will be routed through BitGo’s platform, with liquidity provided by Susquehanna, which will enable hedge funds, family offices and other large investors to execute bilateral trades without moving assets off platform or converting holdings, including Bitcoin or stablecoin, into cash.

Positions are backed by crypto collateral and documented using derivatives-style agreements, with minimum trade sizes starting at $100,000.

Examples of event contract listings on Polymarket. Source: Polymarket

Prediction markets allow users to trade contracts tied to the outcome of real-world events, with prices reflecting the market’s implied probability of an outcome. Contracts can cover everything from sports and geopolitical events to niche outcomes like short-term Bitcoin (BTC) price movements or weather conditions.

While these markets have grown as tools for pricing event-driven risk, institutional participation has remained limited due to gaps in custody, collateral management and execution infrastructure, according to BitGo.

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Related: Major League Baseball inks deals with US regulator, Polymarket

Prediction markets face growing regulatory pressure in US

The launch comes as prediction markets face growing legal challenges in the United States, where at least 11 states have taken action against platforms like Kalshi, arguing they operate as unlicensed gambling venues.

In Nevada, a state court issued a temporary ban on Kalshi on March 20, siding with gaming regulators who said the platform offers unlicensed betting on event outcomes.  The ruling followed a federal appeals court decision on Thursday to deny Kalshi’s emergency request to pause the case.

In Arizona, authorities filed criminal charges against entities linked to Kalshi, alleging it accepted wagers on elections and sports in violation of state law. However, Kalshi co-founder and CEO Tarek Mansour called the charges a “total overstep,” arguing that his platform’s activity is unrelated to gambling and accusing the state of attempting to bypass the judicial process.

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Elsewhere, lawmakers are moving to bring prediction markets under existing gaming frameworks. In Utah, proposed legislation would classify certain event-based contracts as gambling, while in Pennsylvania, lawmakers are preparing a bill that would place the sector under the state’s gaming regulator, including a 34% tax on revenue.